CoreCivic Acquires Social Security Administration Facility For $242M
The 540,566-square foot facility is the newest of several other properties occupied by the Social Security Administration in Baltimore.
BALTIMORE–CoreCivic, a REIT better known for its portfolio of correctional facilities, has acquired a 540,566-square foot Social Security Administration office building here for $242 million, excluding transaction costs and certain closing credits.
Located at 6100 Wabash Ave., SSA–Baltimore was purpose built to SSA specifications in 2014 under a 20-year firm term lease that expires in January 2034.
SSA–Baltimore, which serves approximately 2,000 SSA employees, is located less than five miles from SSA’s federally owned headquarters in Woodlawn, and is the newest of several other properties occupied by the SSA in Baltimore. JLL’s John Duffy, Marc Rampulla and Brian Saal represented the seller in the deal.
As part of the transaction, CoreCivic has assumed $157.3 million of in-place financing that was used to fund the initial construction of the property in 2014. The remaining purchase price was funded from the company’s revolving credit facility.
CoreCivic expect this acquisition to contribute $0.01 to $0.02 of Funds From Operations per share in 2018.
Expanding Its Government-Leased Portfolio
The acquisition is part of the REIT’s push to expand its portfolio of government-leased real estate assets, according to Damon Hininger, CoreCivic’s President and CEO.
“The acquisition of SSA–Baltimore expands our CoreCivic Properties portfolio by approximately 36% on a rentable square foot basis,” he said in a prepared statement.
Following this acquisition, this business segment is expected to generate approximately 10% of the company’s facility net operating income on an annualized basis, he added.
CoreCivic owns 26 properties representing nearly 2.1 million square feet of real estate within its CoreCivic Properties portfolio, all used by government agencies. CoreCivic also owns 44 correctional and detention facilities within its CoreCivic Safety segment and 26 residential reentry centers within its CoreCivic Community segment. The company also manages seven correctional facilities it does not own.